Boeing gained more than 17% to lead the Dow higher.
First Quantum Minerals Ltd. climbed 27% on the base metal rally and the company's report that it will maintain its production guidance for the yearChorus Aviation Inc. surged 21%Pembina Pipeline Corp. rose about 20%Cameco fell slightly after halting its Cigar Lake mineReal estate sector rose 8.4% after falling 15% yesterday.
The Canadian dollar strengthened against its US counterpart on Tuesday as the prospect of stimulus efforts to ease the economic pain of the coronavirus pandemic tempered risk aversion.
The Canadian dollar was little changed at about 1.45 to the USA dollar, or 68.97 US cents. The currency, which last Thursday hit a four-year low at 1.4669, traded in a range of 1.4375 to 1.4532. South Korean stocks surged 8.6%, Germany's market jumped 11% and Treasury yields rose in a sign that investors are feeling less fearful.
Senators are optimistic that they will agree on a fiscal stimulus package that will help the economy weather the economic devastation that is resulting from the coronavirus outbreak, which is boosting markets, in addition to bottom-pickers hunting for low priced, beaten down companies.
Since the outbreak took hold in the US last month and oil prices plummeted, stocks have fallen more than 30% from their all-time highs in mid-February.
The 7% jump in the blue-chip index on Tuesday put it on pace for one of its best days in the last 12 years, second only to a 9.4% jump from last week.
In the USA, sentiment appears to have been boosted after top congressional and White House officials emerged from grueling negotiations over a almost $2 trillion coronavirus rescue package saying they expected to reach a deal Tuesday.
"People woke up this morning to realize that legislation will be passed".
The S&P 500 dropped 2.9% to 2,237 and closed 34% below a record set last month as both indexes sank further into bear markets amid the COVID-19 outbreak.
Boeing Co BA.N powered the Dow's gains, jumping almost 21% after Chief Executive Dave Calhoun said the planemaker expected the 737 MAX jet to return to service by mid-year. Its shares have lost almost two-thirds of its value so far in 2020. Recovery could take six weeks in such cases.
Governments and central banks in other countries around the world are unveiling unprecedented levels of support for their economies in an attempt to limit the scale of the upcoming virus-related slump.
The Fed's action had failed to persuade Wall Street on Monday, with losses of 2 per cent-3 per cent on major indexes.